Failure To Notify Penalty?

Failure To Notify Penalty

How RIFT Accounting Can Help

This is an area that unfortunately trips businesses up from time to time through no real fault of their own. Whenever a change occurs that affects the amount or kinds of tax you're liable for, you need to let HMRC know. Failing to notify HMRC when any of these types of changes happen will leave you open to unwelcome penalties.

Changes might include:

Becoming liable for tax because your new business has made a profit.

Starting a company that's liable for Corporation Tax.

Your business turnover reaching the VAT registration threshold.

Selling an asset and making a capital gain on which tax should be paid.

Starting a type of business that must register with HMRC -for example, a business that will charge Excise Duty.

Your circumstances changing in a way that affects your tax position.

The severity of the penalty in this case will be based on the Potential Lost Revenue (PLR) at stake, which boils down to the amount of tax or duty that went unpaid as a result of the failure to notify. You may be able to negotiate with HMRC for a reduction if you let them know about the error yourself and co-operate with them in fixing things. If you've appointed us as your agent with HMRC, RIFT Accounting will always be able to fight your corner in these situations.

Small business owners who are extremely busy and have a lot on their minds can often miss updates about changes to legislation, requirements or thresholds if they are not effectively communicated to the general public. Research shows that lack of information in this area leads to the early demise of many brave and promising businesses. We are in constant contact with HMRC, and with constant oversight of your figures we can make sure that you never become a casualty.

If you've been issued with a penalty, or if you are worried that you may have made a mistake in your filing or missed any deadlines, talk to us as soon as you can and we can act on your behalf to get everything sorted out and back to normal.